 Good morning everyone and welcome. This is Melissa Armone. I'm here reviewing the spy today is December 28th Tomorrow is the last trading day of 2017. So let's take a look at the entire year We're gapping up here this morning market looks higher today And my prediction is that we closed strong in the end of the year, which which it you know It's kind of unusual. So let's take a look at it. In fact, let's look at last December 1st So there we are. So we did not have a positive day to close the year. All right, and Let's just look at the last three years Just just for show because I want to say something here and I just want to Prove to myself that I'm right Okay, now we're 2015 12 to of 31 we were read to close the year 2015 2014 We're ready to close the year 2014 I'm gonna look back at all these here now. Hold on one second See how fast I can do this because I'd sent in my mind and I and I and this is just confirming what I was seeing in the chart Okay, so 12 31 Of 2013 we had a green day It was not a large green day. We traded up about 77 cents You can see it here from the open 180 407 high 180 469 long was 183 93 So the last time we had a rally Okay, a large green rally and to the end of the year because 2013 was that was only a small bar Wasn't even a dollar. I'm looking at the spy here 2012 2012 we have a decent rally there to end the year. We didn't make a new high though. All right, but we had a decent rally and We did make a new high then to begin 2013 in a gap up so that was Yeah, let's see if I can find it here without squishing it here So we made a new high in the market then Nope, it wasn't in the gap up, but it was early then early in 2013. We made new highs in the spot Wasn't the first day of the year Wasn't the first day of the year, but we did gap up ran up the first day of the year. This is 2013 Close strong into the end of 2012 last trading day and then we did quickly make new highs in the spy This is the beginning of January. We did it and then into February. This is 2013 So this is going all the way back and then here's today. I know this is really small But I just want to look at something here. So anyways, I Believe that we're gonna clue strong the Trump signed the tax reform bill last week and I thought the market might rally on that and then we kind of Pittered out and it was a holiday week and people were off and I had a I had a feeling would really close the year very strong I didn't know if it would be a big rally getting over the highs into the end of the year But I do think that's how it's gonna play out because we didn't have a rally last week With the tax reform and the market's just been strong all year And we're gapping up today and we're nearing the highs again And if we rally today and rally tomorrow, we're gonna make another new high to close for the end of this year And I don't see that in any of these charts back for the last several years So the point I'm trying to make and I thought it was right on that because I have all the charts in my head all the years I mean, I've been trading now for almost 10 years It's it's kind of unusual. Okay, so kind of meaning very For the market to make a brand new high on the last trading day of the year If that really does happen, which we won't know until four o'clock tomorrow on the 29th It would be it would be a sign of strength in the market And it'll be the confirmation that we will continue to be bullish into 2018, which is my prediction for next year Now where do we go? It's not that we necessarily have to keep going Obviously markets wiggle and jiggle and they pull back. We really have not pulled back hardly at all this year You can see here now. I'm gonna blow this up from the beginning of January Okay, this is the start the year in here this year Every pullback that was a small tiny pullback was bought there were very very few bearish gaps or gap downs in the market There were some days when the market gap down and ran red But there was absolutely no follow-through to those gap downs and the market continued to move up higher There was follow-through in gap ups and the market continued to get bought and there was more bullish gaps that I've seen It I can't even tell you the last time I've seen this many bullish gaps in a chart and really anything any any other stock Chart I've even looked at and I look at them all, okay So the market kept having buying which is one of the reasons I continued to call the market higher And for us to be gapping up like I said today this morning I mean we could even gap out tomorrow morning I don't know if we do but we don't have to do that to hit over the high But we're so close here now. I think we move over 270 And then where would the target be? It depends where we trade up today 270 is a real number. I think we get over before tomorrow at four o'clock And I called an option call gosh 1212 it was For it was it was a cheap cheap option trade. You could have bought it It expires tomorrow It's gone down in value, but if we get the pop in the market tomorrow that trade is going to be a huge trade And this is this is this is what it is I mean you have to really have conviction of what you're doing and believe in your trades if you're gonna if you're You're gonna take them and and if you're gonna hold them on through the market is proving to do exactly what I thought here for December which is make another new high We struggled like I said a little bit last week, but really people were off So you can't make much from that And we had the anticipation of the tax reform that was all through September because we really had a huge rally September November October, you know all of this in here Is just the market rally rally rally December even we were making new highs this day in here 1218 we hit up over the high 268 60 was the last high so My prediction for 2018 is that we followed through higher We have to see how we close today and tomorrow to determine what the numbers will be But the market has had about a 25 rally since Trump getting elected which was November 2016 So a little bit over a year here with a 25 move up. Are we going to move 25 percent from here into 2018? I have no idea But we certainly could but even if we only move half of that Now just listen to me even if we only have half the move in 2017 that we had in And even if we only have half the move in 2018 that we had in 2017 Then Then that still is going to take us very close to And i'm talking about just from here today around the 268 air number here That will take us very close to 300 in the spy. I mean that that number is just not I mean that number is going to be hit Now whether whether we hit 300 in the spy in 2018 or 2019 or if it takes till 2020 I mean I that that number is going we're going to that number the market is headed to 300 in the spiders I mean it just is it is And it's not that we're going to go straight there And then we don't even need to to hold this beautiful uptrend But we have power trended up all year and that is something that Uh is rare for the market I mean I I just can't tell you how rare it is for a market like this to power trend stocks do it all the time And i'm i'm talking about power trend up or down It's rare that the market would power trend in one direction for an entire year and that is exactly what the market did Stocks do it stocks do it all the time, but it's rare for a market ETF to do that In fact, there's no year here that I can even point to that that we did that There's no year here going back and i'm going to go back actually all the way to 1999 here just to show you There is no year That I can say the market power trended in one directional bias the entire year Now I mean 2018 I mean 2008. I'm sorry 2008 was bearish for the market in here. We dropped off But this wasn't a power trend down. It was a steep drop off But it only happened you see here in the summer of the year So you can't say we power trended down even all of 2008. This is after the banking crisis You know, I mean there's no year in here that the market power trend did and there's a difference between holding an uptrend And power trending up All right So bottom line is that there were people that thought the market was extended. They were wrong There were people that at various points short of the market here when we made the top the double top the topping tail Here again, we made the lower high And the lower lower. I mean there were many many times in here here again You know, you can tell that people went in here short a little bit and they got blown on through here in this bullish gap Up this was 9 11 so expect more of the market to continue higher How much buying comes in here today and tomorrow in the last final days of the year? I don't know and I won't till I see it But i'm telling you 2018 looks very bullish I don't know if we power a trend like we did this year But at this point now nothing would surprise me and You're you're going to be looking at companies again, which the spiders are made up of Certain companies in the index that are going to have probably some really good performances in 2018 on earnings because of the tax savings for these corporations So I mean there's no reason to expect that the market is going to change this trend anytime soon And it will be another good year for people to be looking at the 401ks, which have already Really exploded in the last 12 months as well So we'll see what happens with that option trade and be watching that 270 Final thought here again this high over here was 268 60 And we'll see where we close tomorrow Good luck everyone the final trading days of the year And we'll see where we go. Have a great day everyone If you're interested in learning my method and how to read gaps and how to read charts in technical fashion like I do Which is how I made this prediction in the market and how I make the picks every day that I trade The next class is in january january 20th and 21st The price of the class is going up on january 1st to five thousand four hundred ninety nine dollars from forty nine ninety nine And if you're interested in want to sign up email me at melissa at the stockswish.com have a great Great new year everyone